CCS/SS/SCS/SB 70 - This act revises the provisions establishing the Missouri Family Trust and its Board of Trustees, a non-profit organization established for the purpose of administering special needs trusts. Special needs trusts are trusts designed specifically for individuals with disabilities that, if established as prescribed by law, do not affect an individual's eligibility for various public assistance programs such as Medicaid services.
This act revises current law by:
(1) Amending the declaration of policy and intent;
Adding the words "beneficiary", "co-trustee", "Missouri family trust", "remainder beneficiary", and "restricted account" as well as adding to the definitions of "board of trustees", "disability", and "trustees";
(2) Adding a provision that the Board may establish and collect fees for administering trust accounts; and
(3) Repealing sections 402.210 to 402.225 and enacting sections 402.201 to 402.208 in their place.
The new sections break up the establishment of various types of accounts under the Missouri Family Trust into trust accounts, restricted trust accounts and the charitable trust. These accounts are maintained in trust as separate accounts, but may be pooled for purposes of investment and management. SECTION 402.202
This act also names the two types of trust accounts and prescribes the duties, restrictions, distribution of assets and procedures for such accounts. "First party trust accounts" are accounts to which the assets of a beneficiary are contributed and administered in trust for the benefit of the beneficiary. Either the beneficiary, parent, grandparent or legal guardian of the beneficiary, or a court shall be the settlor of the account. At the death of the beneficiary, the Board shall provide notice that the trust has terminated to each state, in addition to the State of Missouri, of which the Board has knowledge that such state has provided Medicaid services to the individual. This act prescribes the procedures for distributing the assets, including to any of the states with claims on the proceeds. SECTION 402.203
"Third party trust accounts" are accounts to which any person as settlor, except a beneficiary or beneficiary's spouse, may contribute assets in the trust to the Board of Trustees for the benefit of the beneficiary. At the death of the beneficiary, the Board shall determine the principal balance of the account and after payment of expenses of the beneficiary as the Board may authorize and all fees and expenses of the Board, shall distribute to the persons, entities, or organizations designated by the settlor as remainder beneficiaries. SECTION 402.204
Under both first party and third party trusts, the settlor of the account may designate a co-trustee to act together with the Board of Trustees acting in its capacity as trustee. This act revises current law by providing that if the Board determines, in its good faith judgment, that a co-trustee has breached his or her fiduciary duties, then the Board may by written notice to such co-trustee, remove him or her and appoint a successor co-trustee or serve as the sole trustee. SECTIONS 402.203.3 AND 402.204.3
REVOCABLE TRUST ACCOUNT
If authorized by the settlor in the trust documents, the settlor or the co-trustee of a revocable trust account, upon written notice to the board and with the board's consent, may withdraw such part of the trust account as the settlor or co-trustee may determine. There are restrictions as to the amount that may be withdrawn. The settlor and co-trustee under the same conditions may also revoke and terminate the trust account. Upon receipt of such notice of termination or revocation, the board shall promptly determine the principal balance of the trust account and follow the prescribed procedure for distribution of the assets. SECTION 402.205
THE CHARITABLE TRUST ACCOUNT
This act requires the Board to establish a charitable trust account for the benefit of individuals with disabilities. The Board shall accept contributions to the trust at the termination of trust accounts and other contributions from donors. The Board shall determine the amount of income and principal of the charitable trust to be used to provide benefits for individuals with disabilities. Benefits provided shall only be those that do not have a negative effect on the individual's public assistance benefits. SECTION 402.206
RESTRICTED TRUST ACCOUNTS
Any person with the consent of the Board may establish a restricted account within the charitable trust and may determine, with the consent of the Board, the class of individuals eligible to be recipients of funds from the restricted accounts, so long as such individuals meet the definition for disabled under this act. SECTION 402.208
This act is substantially similar to HB 469 (2011).